GTA new home market poised for upswing as buyers emerge from the sidelines

The GTA new home market picked up slightly in March, compared to the previous month, the Building Industry and Land Development Association (BILD) reports.

There were 1,277 new home sales in March, which was down 70 per cent from March 2022, and 65 per cent below the 10-year average, according to Altus Group, BILD’s official source for new home market intelligence.
Condominium units, including those in low-, medium- and highrise buildings, stacked townhouses and loft units, accounted for 893 units sold in March, down 73 per cent from March 2022, and 63 per cent below the 10-year average.

Demand returning

There were 384 single-family home sales in March, down 57 per cent from March 2022, and 67 per cent below the 10-year average. Single-family homes include detached, linked and semi-detached houses and townhouses (excluding stacked townhouses).

Total new home remaining inventory was 14,479 units, slightly lower than the previous month, but up substantially from last year’s record low in March. It included 12,887 condominium units and 1,592 single-family homes, representing about 10.5 months and six months of inventory, respectively, based on average sales for the last 12 months. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed buildings. A balanced market has nine to 12 months of inventory.

“Sales of new homes may have been muted for the past few months due to short-term market conditions, but demand will inevitably return as GTA families resume looking for the homes they need,” says Dave Wilkes, BILD president and CEO. “That’s why we commend the provincial government on the further steps it took recently to address housing supply and affordability – the introduction of Bill 97, the Helping Homebuyers, Protecting Tenants Act, and a consultation about changes to the provincial policy statement, which governs land use planning. Both of these steps will ultimately make it easier to add much-needed new housing supply in Ontario.”

Poised for an upswing

“Overall, the new home market remains poised for an upswing, as inventory levels are robust and pricing crawls higher,” adds Edward Jegg, research manager with Altus Group. “With interest rates holding fast and the resale market strengthening, buyers have begun to re-emerge from the sidelines.”

The benchmark price for new single-family homes increased in March compared to the previous month, to $1.79 million, down 2.1 per cent over the last 12 months. The benchmark price for new condominium apartments increased in March compared to the previous month, to $1.11 million, which was down 10.8 per cent over the last 12 months.